Recital 11

(11) In accordance with Regulation (EU) 2020/852, and in order to provide investors with clear, quantitative, detailed and common definitions, the criteria set out in that Regulation should be used to determine whether an economic activity qualifies as environmentally sustainable. Proceeds of bonds that use the designation ‘European Green Bond’ or ‘EuGB’ should be allocated to economic activities that are either environmentally sustainable, and therefore aligned with the environmental objectives set out in Regulation (EU) 2020/852, or that contribute to the transformation of activities so that they can fulfil the criteria in order to become environmentally sustainable. Issuers should in any case allocate all the proceeds of their European Green Bonds before the maturity of each bond while being allowed to deduct issuance costs that are directly related to the issuance of the bonds. It should be possible to use the proceeds of those bonds to finance such environmentally sustainable activities both directly through the financing of assets and expenditure that relate to economic activities that meet the criteria for environmentally sustainable economic activities set out in Regulation (EU) 2020/852 (the ‘taxonomy requirements’), and indirectly, under certain conditions, through financial assets that finance economic activities that meet those criteria. It is therefore necessary to specify the categories of assets and expenditure that can be financed with the proceeds of European Green Bonds.

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Source: EUR-Lex (Cellar) · retrieved 2026-11-03 · Text as adopted (Official Journal); later amendments are not incorporated in this text.